Mensa follows thrasio-model: 1) If interested in a brand/business, sign Letter of Intent 2) Due Diligence ⇒ Financial statements, sales, costs, marketing etc. 3) If satisfied with brand health & future growth, share valuation to buy – Buidd
Time to become a Unicorn startup:
– PayTM & Flipkart: 5 years
– Ola: 4 years
– Udaan: 2 years
⇒ Mensa Brands: 6 MONTHS!
Best part ⇒ It is NOT an “original” idea — just great timing & execution!
Why are VCs going gaga about Mensa Brands? Let’s uncover 🧵
1/ What are “Thrasio-style” startups?
It all started in 2018 with a US startup, Thrasio.
Business model:
1) Acquire top-performing businesses ⇒ Revenue > Costs = Solid profits
2) Avg deal size = $4-5mn
3) Takeover the business & manage it end-to-end
(contd.)
Thrasio (OG startup) stats:
– Acquired 100+brands
– $500 million revenue
– $100 million profit
– $6 billion valuation in only 3 years!
2/ Is this space heating up in India?
VCs love thrasio-model startups!
In India,
1) GlobalBees ⇒ Biggest Series A funding in India of $150 million
2) 10Club ⇒ Largest seed round of $40 million, in <1 year of founding
3) GOAT Brand Labs ⇒ Series A funding of $36 million
3/ So, what’s Mensa really about?
Follows thrasio-model:
1) If interested in a brand/business, sign Letter of Intent
2) Due Diligence ⇒ Financial statements, sales, costs, marketing etc.
3) If satisfied with brand health & future growth, share valuation to buy
(contd.)
4) Business founders get money and/or profit-share
5) Real execution ⇒ In-house experts experts take over to build the brand and scale the business rapidly
5/ How were they able to raise such a big round?
Mensa raised $135 million at a valuation of $1.2 billion.
– Thrasio-model is already popular with VCs
– Mensa founded by Ananth Narayanan, ex-CEO of Myntra and co-founder & CEO of Medlife ⇒ Huge credibility
6/ So much money! Where does it go?
80% fund raise to acquire new brands ⇒ $108 million
Average deal size ⇒ $4 to 5 million
Assuming avg $4.5 million, 108/4.5 = 24 brand acquisitions
Mensa plans to acquire 40 brands in next 12-18 months, so another fund raise is coming!
7/ Is Mensa Brands going to succeed?
Founder claims it’s already profitable!
To succeed in long term:
1) Skillset: Need brilliant execution — marketing, supply-chain, pricing etc.
2) Market dynamics: Thrasio planning to enter India soon ⇒ Tough competition
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